Inflation leads to bracket creep, which forces taxpayers to pay a larger percentage of their income in taxes, when
(a) Changes in the real purchasing power of their income do not keep pace with inflation.
(b) Changes in the real purchasing power of their income keep pace with inflation.
(c) Income tax codes change quickly as inflation emerges, impacting real purchasing power.
(d) Income tax codes increase without taxpayer knowledge, forcing them to pay higher taxes
than anticipated.
(a)
You might also like to view...
When disposable income is zero, consumption expenditure is
A) also zero. B) negative. C) equal to induced consumption expenditure. D) equal to autonomous consumption. E) None of the above answers is correct.
Which group of investors vote for a corporation's board of directors?
A) bond holders B) holders of preferred stock C) holders of common stock D) both holders of common and preferred stock
If the economy is experiencing a recessionary GDP gap from a negative demand shock, then aggregate
A. Demand must be decreased further to adjust to the new, lower natural rate of employment. B. Supply must be decreased so that producers will have fewer goods to sell. C. Demand must be increased so that producers can sell more goods. D. Supply must be increased to curtail the ensuing inflation
When economic profits exist in the market for a particular product, this is a signal to producers that
A. Consumers would like more scarce resources devoted to the production of this product. B. The best mix of goods and services is being produced with society's scarce resources. C. The market is oversupplied with this product. D. Price is at the minimum of the ATC curve.